Is it Time to Find a New Financial Advisor?

When it comes to finances, we all need help — even if you’re an accountant (like I am), or fairly knowledgeable about money. This is where hiring a financial advisor is a smart move!

They are likely one of the most important hires you’ll ever make. The success or failure of this partnership is built on creating a solid relationship. But like with any other relationship, it can get complicated.

If you’re uncomfortable with your financial advisor or find they aren’t fitting your investment needs, it’s time to evaluate why.

Here are the warning signs to look for when it’s time to find a new financial advisor.

Sporadic Communication

Bad communication from your investment advisor is a big red flag. It’s one thing to have a question or issue that needs to be taken care of, but it’s a whole other thing to not have consistent contact from them.

I’m currently researching a new investment advisor for this reason. I only hear from mine about once a year — or when a problem arises. Even something as simple as a voicemail, or email to check up on me, would be better than feeling like I’m just another number in their spreadsheet.

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You shouldn’t have to constantly wonder if your investments are being taken care of. You’re a paying client, so it’s their responsibility to reach out to you, to see if you have questions, issues or just want to chat.

Handing over your money and financial life to someone else is scary! Make sure the person on the other end understands the importance of keeping the lines of communication open.

Lack of Transparency

In order for your financial professional to accurately help you reach your financial goals, you’ve got to be open and transparent with your money. Likewise, they need to be just as transparent with how they run their business and their investment strategies.

How do they earn money off your investments? Are they partners with any of the funds? Do they participate in revenue-sharing?

These are the types of questions you should ask, and your financial advisor should be more than happy to answer.

Sometimes it comes down to a gut feeling, so if you don’t feel comfortable with them, or you don’t think they are being honest and transparent about how they handle your money, it’s probably time to find a new financial advisor.

Differences in Ideas and Goals

We all have our own financial goals and aspirations for building wealth. This is something you and your investment professional need to be on the same page about. If there are too many philosophical differences between both of you, that’s a recipe for disaster.

Does your advisor believe in taking more risks? What’s their personal investment strategy? Do they invest emotionally or have a level-head?

If both of your beliefs don’t match up, and your investment advisor doesn’t understand your goals about saving for the future, it will be difficult — maybe even impossible — for them to properly manage your portfolio.

If there are too many differences in philosophies and strategies, it’s time to seek out a new advisor.

Don’t Wait to Hire a New Advisor

If you’re seeing any of these warning signs, don’t wait to seek out a new investment professional. Hire a new one now!

You’re only doing yourself, and your future, a disservice if you don’t act quickly. You could be missing out on big investment returns, losing out on high advisor fees and more.

You also don’t want to wait till the market is bad and you — along with everyone else — is jumping ship to find a new advisor. Take the opportunity now, when you’re not in panic mode and can be confident of your decision.

Have you noticed any of these signs with your financial advisor?